HPCL hints at rationing fuel supplies

Published: Thursday, May 29, 2008, 15:05 [IST]

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New Delhi, May 29 (UNI) State-run Hindustan Petroleum Corporation Ltd (HPCL) today hinted at rationing fuel supplies if the government does not thrash out a solution on sky-rocketing oil petroleum prices.

''As of now, there is no plan to ration the supply. If the government will not announce a special package to offset the mounting losses by next week, we will consider rationing of fuel supplies pan-India,'' company Chairman and Managing Director Arun Balakrishnan told reporters here while announcing its financial results.

He said the company could sustain for the next two-three months only if the current trend in the global crude oil prices continues and certain measures are not taken to correct the situation.

At present, the company's borrowing limits stand at Rs 18,000 crore.

''We are in talks with few bankers for extra credit of around Rs 2,500-3,000 crore. The situation is tight, but we are still hopeful that this much credit will be available,'' Mr Balakrishnan said.

With this additional borrowing, the company will be able to cover up its crude import bill for the next two-three months, he added.

Indian Oil Corporation (IOC) last evening also warned of an impending chaos, where petrol and petroleum products could be rationed. The oil marketing companies (OMCs) would run out of their borrowing limits and all capital expenditure on projects would come to a halt.